How do I report a tobacco-quota buyout on my taxes?

Mar. 1, 2006

A: The Agriculture Department is sending forms 1099-S to the quota owners showing the proceeds of the buyout. But the amount reported on 1099-S is not necessarily the income the taxpayer should report, the IRS says. The owner may choose an installment method in which he or she reports only the income received each year, the IRS says.